Owning a home is worth making sacrifices. Those sacrifices may include (1) downsizing your car, (2) reducing your rent expense, (3) saving a portion of your money, (4) spending less on entertainment and (5) getting your family or partner to help you buy the home you have been dreaming of. If you are serious about owning your home, then take our advice.1. Downsize your vehicle
It might not be what you want to do, but what you need to do that can help you get the keys to your own home. Maybe your brand new sports car can be traded in for an older, less high-tech model or brand of vehicle. It won’t be the dream car you want but if you plan on living in your new home and not your car, then downsizing is necessary. Consider even selling your car and using public transportation, which will save you the money you would have to spend on petrol, toll, insurance, wear and tear, fitness and the list goes on.
2. Moving down to move on up!
What about moving down to move up? Where do you live now? Are you renting a house that is large and elaborate, but is costing you more than half of your salary? Maybe you can move to somewhere cheaper and more affordable to allow you to save more towards your own home. All the extra money you are giving your landlord could be used to put towards your own house in the same area. As former British politician Winston Churchill says, “Success is not final, failure is not fatal: it is the courage to continue that counts.” So, move around so you can move up in comfort and with peace of mind.
3. Save! Save! Save!
Here’s another tip. Invest a portion of your money in saving towards your new home. Investing is also very important. Saving plans are available from many financial institutions across the island. Speak with a financial adviser about the best way to invest your money today! Just like how you would save lunch money every day to buy ice-cream as a child, saving a few bucks each day, week, month or year towards your dream house is just as simple and achievable.
4. Cut back on spending
Another key to buying your own home is to be a little more frugal. Look at how much money you spend on entertainment like outings, trips, parties and other activities, and see if you can cut back. Maybe you can cook at home more, ‘run-a-boat’ with friends, wait until movies come out on TV to watch them, go to free beaches or find cheaper hobbies, like reading online books or doing activities around the house. A short while of less entertainment can lead to a long time in your new home.
5. Get a partner to buy with you
Buying a home on your own might seem daunting even after making all these changes, so get someone to help you out. They say, two heads are better than one. Get someone who is willing to invest in your dream with you, like a family member or partner. You can get more money if you have help and the time to pay your mortgage is significantly reduced when you aren’t footing the bill alone. So, find someone you can trust, and pool together to buy the house you keep losing sleep over or the apartment whose open house you went to two years ago.
Homeownership is in the future of everyone who is willing to make the sacrifices and take the necessary steps to invest in the home of their dreams seriously.